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26.02.202110:25 Forex Analysis & Reviews: Analysis and trading recommendations for the EUR/USD and GBP/USD pairs on February 26

Analysis of transactions in the EUR / USD pair

Strong consumer confidence and lending data in the EU led to an increase towards 1.2188. It also formed a buy signal in the market, which led to a 42-pip rise in the price, since the MACD line, during that time, was in a positive zone.

Exchange Rates 26.02.2021 analysis

Trading recommendations for February 26

The market will move today according to the latest reports from both US and the EU. Poor indicators on the side of the EU will increase the pressure on the euro. Meanwhile, good performance on the side of the US, for example, changes in the level of expenditures and incomes, as well as strong consumer sentiment, will lead to a new wave of growth in the US dollar.

For long positions:

Buy the euro when the quote reaches 1.2182 (green line on the chart), and then take profit around the level of 1.2242. EUR / USD will rally if there are very good economic reports from the EU.

Keep in mind that before buying, the MACD line should be above zero and is starting to rise from it.

For short positions:

Sell the euro after the quote reaches 1.2144 (red line on the chart), and then take profit at the level of 1.2075. Pressure on the euro may return if reports for the EU economy are bad, or if bond yields in the US continue to grow.

But of course, before selling, it is important to make sure that the MACD line is below zero and is starting to move down from it.

Exchange Rates 26.02.2021 analysis

What's on the chart:

The thin green line is the key level at which you can place long positions in the EUR / USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the EUR / USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

Analysis of transactions in the GBP / USD pair

Three signals appeared in the market yesterday. The first one is to buy at 1.4174, but it had to be ignored because the MACD line, during that time, was in the overbought area. Then, the second buy signal at the same level coincided with the movement of the MACD line towards the positive zone. However, it did not lead to a strong upward movement. Only the third signal, which is to sell at 1.4135, was profitable. It set off an 80-pip decline in the market, which covered all losses and brought a fairly good profit.

Exchange Rates 26.02.2021 analysis

Trading recommendations for February 26

Reports on the state of the US economy will be released today, and they will certainly set the tone of trading for GBP / USD. To put it more precisely, changes in the level of expenditures and incomes in the US, as well as strong consumer sentiment, could lead to a new wave of growth in the US dollar. The bears are also one step away from setting off a large decline, so it is best not to open long positions in this current bearish correction.

For long positions:

Buy the pound when the quote reaches 1.4032 (green line on the chart), and then take profit at the level of 1.4126 (thicker green line on the chart). GBP / USD will trade upwards only if the quote breaks above 1.4032. Otherwise, it will resume a strong decline.

Keep in mind that before buying, make sure that the MACD line is above zero and is starting to rise from it.

For short positions:

Sell the pound after the quote reaches 1.3959 (red line on the chart), and then take profit at the level of 1.3876. If the volume of short positions continues to build up, the trend could turn into bearish, which will lead to a larger fall in GBP / USD. Aside from that, strong data from the US will ultimately push the dollar up against the pound.

Keep in mind that before selling, make sure that the MACD line is below zero and is starting to move down from it.

Exchange Rates 26.02.2021 analysis

What's on the chart:

The thin green line is the key level at which you can place long positions in the GBP/USD pair.

The thick green line is the target price, since the quote is unlikely to move above this level.

The thin red line is the level at which you can place short positions in the GBP/USD pair.

The thick red line is the target price, since the quote is unlikely to move below this level.

MACD line - when entering the market, it is important to be guided by the overbought and oversold zones.

Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decisions based on the current market situation is an inherently losing strategy for an intraday trader.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Jakub Novak,
Analytical expert
InstaForex Group © 2007-2021
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